The Economic Co-ordination Committee (ECC) of the cabinet is likely to give approval of the subsidy to the tune of Rs 800 million to the Pakistan International Airlines (PIA) for Haj Operations 2006.
Official sources told Business Recorder on Thursday that the ministry of defence has demanded subsidy of Rs 800 million for the national flag carrier due to high operating cost as a result of increase in fuel prices. As a second option, the concerned ministry has also demanded 20 percent increase in Haj fares on the behalf of PIA.
The ECC in its meeting on January 4, 2006 would also discuss both these options and give approval of either Rs 800 million subsidy or 20 percent increase in Haj fare.
The ECC will also discuss the allocation of gas from Fateh Shah Field at Mehran block. In this regard, a summary of ministry of petroleum and natural resources would be considered by the ECC.
Other items on the ECC agenda included data on economic indicators, adjustment of re-lent foreign loans to Wapda with small balances and restructuring of balance sheets of Discos.
The ECC will also take up issue of lender''s consent for transfer of foreign direct loans to the computerised entities of Wapda''s power wing and policy proposal regarding power generation capacity addition on fast track basis.
The committee would also review the sensitive price indicator (SPI) and prices of sensitive item for the week ending on December 29, 2005.
The State Bank of Pakistan (SBP), Ministry of Commerce and CBR will present the economic indicators, whereas tax authorities will present latest revenue figures up to July-December (2005-2006). The CBR has to meet the target of Rs 690 billion for the current fiscal and the figures of first half of 2005-2006 would give the clear picture about the revenue position. So far, the CBR has collected Rs 245 billion during the first five months (July-November) of the current financial year.